The 2020 Mid-Year Economic Update_long

Day: January 28, 2009

Illinois Tool Works Sales Down 5.9% In 4Q

Illinois Tool Works Inc., Glenview, IL, reported fourth quarter sales of $3.68 billion, a decline of 5.9% from fourth quarter 2007.  Profit fell 50% to $233.8 million.
Organic sales declined 9.2% in the quarter due to further weakening in worldwide end markets, with North America decreasing 12.3% and international falling 6.2%. The strengthening U.S. dollar negatively impacted revenues by 4.5%, and acquisitions contributed 7.8% of growth in the fourth quarter.
For full-year 2008, operating revenues of $15.9 billion were 6.7% higher than full-year 2007. Base revenues declined 2.5% in 2008, with North America down 4.8% and international essentially flat for the year. Acquisitions and currency translation contributed 6.6% and 2.8%, respectively, to the 2008 ...

Timken Reports 4Q Loss Of $36.2M

The Timken Company, Canton, OH, reported fourth-quarter sales of $1.21 billion, a decline of 9.7% from the same period a year ago. The company recorded a loss of $36.2 million for the quarter, as compared to profit of $48.3 million in fourth quarter 2007.
For the entire year, Timken reported sales of $5.7 billion, an increase of 8% from 2007. Profit improved 21.6% to $267.7 million.
During the year, the company benefited from strong demand in global industrial markets, surcharges, pricing and currency, as well as acquisitions serving the aerospace and energy market sectors. Lower automotive demand partially offset these benefits.
"Our strategy to reposition the company for more diversified, profitable growth in industrial markets contributed to ...

Black & Decker 2008 Sales Down 7.2%

The Black & Decker Corp., Towson, MD, reported sales for 2008 decreased 7.2% over 2007 to $6.1 billion. Profit was $293.6 million, down 43.3%.
For the fourth quarter ended Dec. 31, profit was $43.7 million, down 76.7% when compared with the fourth quarter of 2007. Sales decreased 17% to $1.4 billion, including a negative 4% impact from foreign currency translation.
In light of weak demand in the fourth quarter, the company reduced employment levels by about 1,200 positions.
Sales in the Power Tools and Accessories segment decreased 13% for the quarter and 10% for the year. In the U.S., sales decreased at a double-digit rate for the Industrial Products Group, reflecting slowing markets for both residential and commercial construction. In the ...

3M Reports Record 2008 Sales of $25.3B

St. Paul, MN-based 3M reported 2008 sales of $25.3 billion, up 3.3% from a year ago. Profit for 2008 was $3.5 billion, down 14.6%.
Fourth-quarter sales were $5.5 billion, a decrease of 11.2% from the same period a year ago. Profit was $536 million, a decrease of 37%.
3M drove record sales in 2008 despite a dramatic fourth-quarter economic downturn, said George W. Buckley, 3M president and CEO, "We are responding to lower demand with aggressive cost management and operational discipline. We streamlined our operations throughout 2008 and we will continue to optimize to protect against the downside throughout 2009. In addition, we plan to reduce capital expenditures by about 30 percent and aggressively attack working capital in order to ...

Kennametal 2Q Sales Decline 12%

Kennametal Inc., Latrobe, PA, reported second quarter sales of $569 million, a decrease of 12% from the same quarter a year ago. Profit was $15.7 million, down 68.7%.
For the first six months of fiscal year 2009, sales were down 1.6% to $1.23 billion. Profit was down 39.9% to $51.1 million.
"Kennametal has made solid progress in executing strategies to balance our businesses across served geographies and end markets. However, we are not immune to the rapid and significant global decline in industrial production that has taken place over the past few months," said President and CEO Carlos Cardoso. "As a result, we continue to take actions to reduce our costs and right size our business in line with current economic conditions while minimizing the ...

SKF Sales Up 8.2% in 2008

SKF reported sales of SEK63.4 billion (US$7.8 billion) for 2008, an increase of 8.2% over 2007 sales. Profit declined slightly to SEK4.74 billion (US$580 million).
For the fourth quarter, sales increased 8.2% while profit declined 25.9%.
"2008 was a very good year for SKF with record sales and profit. However market demand weakened considerably towards the end of the year. In the fourth quarter the automotive business continued to deteriorate and a negative trend was seen also for several industrial segments, said Tom Johnstone, president and CEO. SKF initiated actions to adapt its capacity and cost base globally to address this."
The fourth quarter included expenses for restructuring activities and other one-time items ...

Industrial Manufacturers Expect Zero, Negative Growth in 2009

U.S.-based industrial manufacturers are expecting revenue growth to turn negative over the next 12 months, according to the fourth-quarter edition of the PricewaterhouseCoopers LLP Manufacturing Barometer. For the first time since the Barometer's inception in the third quarter of 2003, more manufacturers are preparing for negative growth (33%) than those expecting positive revenue growth (25%). Meanwhile, another 34% are expecting zero growth.
In the year ahead, manufacturing executives anticipate a sharper year-to-year drop-off in revenues, down to an average of -2.4%. Just one year ago, survey respondents forecasted a mean revenue growth of +5.4%.
For the first time in the Barometer's history, industrial manufacturers are ...